FCC Eliminates Vanity Call Sign Fee

The FCC has found that it costs the agency more to process the regulatory fees for amateur radio vanity call signs and other services such as GMRS than the fees themselves cover. Rather than increasing the rate, the FCC has decided to eliminate them altogether. This change will not go into effect until the required congressional notice has been given, which typically takes at least 90 days. Any fees paid prior to the institution of the change will not be refunded. This is great news and a welcome change from the tedious fee recovery process that has been normal.

From the ARRL:

The FCC is eliminating the regulatory fee to apply for an Amateur Radio vanity call sign. The change will not go into effect, however, until required congressional notice has been given. This will take at least 90 days. As the Commission explained in a Notice of Proposed Rulemaking, Report and Order, and Order (MD Docket 14-92 and others), released May 21, it’s a matter of simple economics.

“The Commission spends more resources on processing the regulatory fees and issuing refunds than the amount of the regulatory fee payment,” the FCC said. “As our costs now exceed the regulatory fee, we are eliminating this regulatory fee category.” The current vanity call sign regulatory fee is $21.40, the highest in several years. The FCC reported there were 11,500 “payment units” in FY 2014 and estimated that it would collect nearly $246,100.

In its 2014 Notice of Proposed Rule Making (NPRM) regarding the assessment and collection of regulatory fees for FY 2014, the FCC had sought comment on eliminating several smaller regulatory fee categories, such as those for vanity call signs and GMRS. It concluded in the subsequent Report and Order (R&O) last summer, however, that it did not have “adequate support to determine whether the cost of recovery and burden on small entities outweighed the collected revenue or whether eliminating the fee would adversely affect the licensing process.”

The FCC said it has since had an opportunity to obtain and analyze support concerning the collection of the regulatory fees for Amateur Vanity and GMRS, which the FCC said comprise, on average, more than 20,000 licenses that are newly obtained or renewed, every 10 and 5 years, respectively.

“The Commission often receives multiple applications for the same vanity call sign, but only one applicant can be issued that call sign,” the FCC explained. “In such cases, the Commission issues refunds for all the remaining applicants. In addition to staff and computer time to process payments and issue refunds, there is an additional expense to issue checks for the applicants who cannot be refunded electronically.”

The Commission said that after it provides the required congressional notification, Amateur Radio vanity program applicants “will no longer be financially burdened with such payments, and the Commission will no longer incur these administrative costs that exceed the fee payments. The revenue that the Commission would otherwise collect from these regulatory fee categories will be proportionally assessed on other wireless fee categories.”

The FCC said it would not issue refunds to licensees who paid the regulatory fee prior to its official elimination.